A. BACKGROUND

Mongolia has received a credit from the International Development Association (IDA) for implementation of the Strengthening Fiscal and Financial Stability (SFFS) project. The Financial Regulatory Commission (FRC) is a beneficiary of the Project and is implementing activities under sub-component #C4. The main objective of the Sub-component is strengthening the institutional capacity of the FRC. 

In recent years, law reform has become an increasingly demanding process, the Parliament of Mongolia approved a resolution of ‘General directives for improving legislation of Mongolia by 2020’ in January 2017. The Resolution included attention to the Law on Legal Status of FRC to be revised by the FRC and Ministry of Finance in 2017. Related to the Resolution, the Parliament of Mongolia also approved (in October 2017) ‘The national programme to develop Mongolia’s financial market until 2025’which included the following objectives:

1. ‘Revise state policy and legislation in the securities market, improve capabilities of regulation and supervision of the regulatory authority and eliminate duplication of similar functions’ and 

2. ‘Ensure stability of insurance market in order to enhance the competitiveness’, 

Despite these precautions, developments and expansion (in terms of products, services, and markets) within the domestic non-banking financial sector during the past 15 years, have presented major regulatory challenges.  And, on 18 October 2019, Mongolia was included in the Financial Action Task Force’s (FATF) list of countries with strategic deficiencies (in the fight against money laundering and the financing of terrorism). The country was given a deadline by which to address its shortcomings (dealing with these types of crime) and improve the entire system. 

In connection with the above, a session of Parliament (17 January 2020) was devoted to improve the policy, strategy, and coordination within this area. The Law on the Legal Status of the FRC and the Law on Licensing of Business Activities have since been amended, to provide for the FRC to regulate and monitor the activities of dealers (traders) in precious metals and stones (and articles made from them) and real estate brokers; in relation to licensed activities. 

Accordingly, the Commission now registers and licenses real estate brokerage firms, and monitors their activities. But due to insufficient existing regulation in the sector, it is necessary to determine the legal basis for the above-mentioned sector’s activities. It is also important to regulate relations arising in connection with the sector’s activities, and there is a need to develop an independent draft law. 

Moreover, it is necessary to study the requirements for a new law regulating the sector associated with the real estate brokerage market. Hence, consulting services are required by the FRC for drafting a primary law regulating the sector's activities, based on an impact assessment of the proposed law and cost estimates. 

B. OBJECTIVE OF THE ASSIGNMENT

The main objective of the assignment is to develop a draft the law on regulating the activities of real estate brokers (and dealers). Prior to the drafting a law, the consultant will:

• conduct relevant assessments of other papers identified in the legislation of Mongolia,

• prepare and introduction to, and a concept paper of, the proposed law, 

• conduct a needs assessment for the proposed law, and 

• complete an impact assessment of the law associated with a cost estimation. 

C. SCOPE OF THE WORK

The Consultant shall confer with others on the preparation of a draft law on regulating the activities of real estate brokerage. This shall be done in accordance with the Law on Legislation, and the methodology in line with the Government’s Resolution No. 59 of 2016. The work will also include an introduction to the proposed law (and concept paper), needs assessment, impact assessment and cost estimation. 

Task 1: Pre-draft (of a law) works (40 working days) 

1.1. Develop and present a work plan; 

1.2. Review the current legislation, relevant laws and rules regulating the market, i.e. the Law on the Legal Status of the FRC, Law on Licensing Business Activities, Law on Anti-Money Laundering and Combatting the Financing of Terrorism, and the FRC’s rules regulating the market;  

1.3. Hold meetings with stakeholders, including governmental and non-governmental organizations, and representatives of real estate brokers/agents; 

1.4. Complete a comparative review of the legislation - relating to real estate brokerage - in at least two other countries. The particular countries will be selected in consultation with the Client; 

1.5. The draft law shall be developed in accordance with the methodology specified in Article 13 of the Law on Legislation and Resolution No. 59 of Government’s Annex 1 (of 2016) ’Develop a baseline survey of the needs and requirements of the draft law’ 

1.6. The draft law shall be developed in accordance with Article 14 of the Law on Legislation and Resolution No. 59 of Government’s Annex 2 (of 2016) ‘Develop a draft concept of the draft law on the real estate brokerage’; 

1.7. A progress report (monthly basis); 

Task 2. Drafting proposed law (off-site; 26 working days)

2.1. Conduct an impact assessment of the proposed law in accordance with Article 17 of the Law on Legislation of Mongolia and Resolution 59 of the Government’s Annex 3 (of 2016), ‘The methodology for conducting impact assessment of legislation’ 

2.2. Estimate the cost of implementation of the proposed law in accordance with Article 18 of the Law on Legislation of Mongolia and Resolution 59 of the Government’s Annex 4 (of 2016), ‘The methodology for estimating cost of implementation of legislation’ 

2.3. In accordance with the above, prepare a concept of the draft law, and in accordance with Article 16 of the Law on Legislation and the methodology specified in Resolution No. 59 of Government’s Annex 2 (of 2016), ‘Develop a draft law on regulation of real estate brokerage  and prepare a final version of the draft law in Mongolian and English’. 

2.4. Develop suggestions for related (new) laws, amendments, and/or repeal of other laws; in connection with implementation of the proposed draft law. 

2.5. A final report.

D. DELIVERABLES

1. A baseline survey on the current legal framework for the activities of real estate brokerage, along with associated recommendations; 

2. A comparative review of at least two countries of the legislation relate to activities in real estate brokerage; 

3. A concept of the draft law on the regulation of activities related to real estate brokerage; 

4. Draft law on the regulation of activities of real estate brokerage, (Mongolian and English);

5. Proposals on related new laws, amendments, and repeals (in connection with the implementation of the draft law on the regulation of real estate brokerage, activities); 

6. Report on the impact assessment of the draft law;  

7. Cost estimation of the draft law; and 

8. A final report.

E. CONSULTANT’S QUALIFICATIONS AND/OR SELECTION CRITERIA

The Consultant shall qualify the following requirements and skills:

Education: The Consultant should have a master's degree (or preferably higher/PhD) in law (specialized in administrative law, civil law, and related fields) or business administration (specialized in business modeling, business laws, etc.); 

Experience: The Consultant should have at least eight years’ experience as a lawyer or other respective professionals; with knowledge of methods and techniques required for drafting policy documents and legislation (preferably with evidence of previous related work); 

Language skills: The Consultant shall be fluent in Mongolian and English; 

Work skills: 

• Extensive knowledge of the real estate brokerage market; relevant knowledge in regulation of informal financial market will be an asset; 

• Ability to draft laws, reports, and legal acts and legislative documents; 

• High analytical skill and research ability;

• Well-organized and ability to work independently; and

• Ability to advise others, and work collaboratively within a team environment; 

F. SUPERVISION AND REPORTING

The Consultant will report directly to the Director of the International Cooperation Department of the FRC; and work under direct day-to-day supervision of the Director of the FRC’s Department for Regulation of Real Estate Brokers and Dealers in Precious Metals and Stones.

The following reporting requirements apply:

• Inception Report: submitted to the Client within 10 working days of the contract being signed; 

• Progress Reports: monthly - once the contract has been signed – describing accomplishments and progress, and to be accompanied by the  developed materials; 

• Final Report: not later than 120 days after the contract is signed, and describing accomplishments in full, and to be accompanied by the completed version of the developed materials; 

G. CONTRACT DURATION

The duration of the consultancy will be four months, and will start in June 2021. Upon signing the contract, the selected consultant will start provision of services and will complete their duties within the period specified in the contract. In accordance with the agreement between the parties, the work specified in the terms of reference shall be completed and presented to the Client. 

H. INSTITUTIONAL ARRANGEMENTS

The FRC will provide office space (work desk, meeting room, etc.) and assign a coordinator to work with the Consultant to facilitate the consultants work at the Commission (meetings, visits and other communications with government agencies, officials, and market players, etc.). The FRC's International Cooperation Department will provide management and organizational support for the day-to-day work of the Consultant. 

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:

1. Cover letter indicating why she/he considers her/himself suitable for the position.

2. Detailed CV highlighting relevant skills/experience.

3. Copy of diplomas or certificates; and,

4. Two (2) reference letters from previous last two employers no later than 15:00, June 24, 2021.

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms. Ariunaa G, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn.

70120582